Alphabet Inc.’s (GOOGL - Free Report) Google is set to host a product launch event in New York Tuesday as it ramps up its product efforts in a growing battle against Amazon (AMZN - Free Report) , Apple (AAPL - Free Report) , and Facebook (FB - Free Report) . So, let’s look at what to expect from the “Made by Google” event and evaluate GOOGL stock.
Made by Google
Google’s New York City press event Tuesday will likely see the company introduce its next-generation Pixel smartphones. The new Pixel 3 and the Pixel 3XL have been rumored for some time now. Like Apple’s iPhones, Google’s new phones will be separated by size. The phones reportedly run Google’s new Android 9.0 Pie software and feature wireless charging and a second selfie camera.
The tech giant might also introduce its new smart home assistant, with access to offerings such as YouTube. Google’s “Home Hub” is said to help control other smart home products, such as security cameras and lights. However, Google’s new offering isn’t expected to feature a webcam for video chatting. This might be a drawback compared to Amazon’s new Echo Show and Facebook’s new smart speaker.
The star of Tuesday’s show could end up being Google’s new tablet. The new Chrome OS-based “Pixel Slate” tablet might help Google challenge Apple’s iPad, at a lower price point. Made by Google might also feature some other significant announcements that could help the search engine giant compete in a quickly expanding smart device market.
Google is coming off a quarter where its total revenues jumped 26% to $32.65 billion. This is impressive growth for a company of its size. Alphabet, which has become the most powerful advertising player in the U.S., saw its ad revenues climb 24%, while paid clicks on Google properties soared 58%. Meanwhile, the firm’s “Google other revenues” category, which is comprised of the Google Play Store, Google Cloud offerings, and its hardware initiatives, surged over 36%.
Shares of GOOGL are up over 17% during the last 12 months, which outpaces the S&P 500’s roughly 14% jump and its industry’s 13%. With that said, shares of Alphabet have slipped recently, down over 1% in the last month.
Looking ahead, Google is projected to see its Q3 revenues jump by 22.4% to hit $27.25 billion, based on our current Zacks Consensus Estimate. Meanwhile, the company’s full-year revenues are expected to hit $109.60 billion, which would represent a nearly 23% surge.
At the other end of the income statement, Alphabet’s adjusted quarterly earnings are projected to pop by 9.7% to hit $10.5 per share. The firm’s adjusted EPS figure is expected to climb approximately 24% in fiscal 2018.
Alphabet is currently a Zacks Rank #3 (Hold) based on its recent earnings estimate revisions trends. But the company also sports an “A” grade for both Value and Momentum in our Style Scores system.
Alphabet is scheduled to report its third quarter 2018 financial results on Thursday, October 25.
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